“We rolled out Compete & Beat to help independent mortgage brokers succeed, and we know when our clients use UWM they get the best technology, service and partnership to help them build their reputation,” a company spokesperson told MPA. “If a couple of basis points is the only reason a broker is sending a loan to another lender, UWM needs to compete and beat that price for them so they can wow their borrower and build their business for the long term. The early reaction has been extremely positive, and we’re excited to see the competitive edge this gives our clients in the current market.”
The Michigan-based company in March reported profits of $239.8 million – down more than 80% from the comparable period in 2020 when $1.4 billion was posted. While the Pontiac, Mich.-based firm posted a higher volume of business in 2021, it earned $1.6 billion in profit compared to $3.4 billion in 2020 – a drop of more than 53%.
Read more: UWM vows not to cut jobs despite profit hit
The offering is the second major launch in as many months launched by UWM since the earnings report. In a departure from its usual borrowing standards, UWM last month announced it would accept personal or business bank statements instead of income documents or tax receipts to help self-employed borrowers qualify for a loan. The alternative forms of income will be available for loans of up to $3 million, up to 90% LTV with no mortgage insurance required, company officials announced. In making the announcement, the company said this would give independent mortgage brokers another competitive edge as it relates to working with non-W2 borrowers.
Mortgage Professional America reached out to UWM’s chief operating officer, Melinda Wilner, to learn more about the company’s motivation in offering the alternative documentation option. She said the company’s move meets a demand currently in the marketplace.
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